EUR/USD is treading water in the mid-1.1300s as uncertainty about US-Chinese relations, global growth, and also Brexit continue weighing on investors’ minds.
The Technical Confluences Indicator shows that the pair faces a wall of resistance at around 1.1405 which is a dense cluster of potent resistance lines including the Fibonacci 38.2% one-week, the Simple Moving Average 200-4h, the Fibonacci 161.8% one-day, the Pivot Point one-day Resistance 2, and the Fibonacci 38.2% one-month.
The next noteworthy cap is close: 1.1440 where we see the convergence of the Fibonacci 23.6% one-month, the Fibonacci 61.8% one-week, the SMA 100-4h, the Bollinger Band one-day Middle, and the PP one-day R3.
Looking down, support is close but is not as substantial as resistance. At 1.1355 we see the confluence of the Fibonacci 61.8% one-month, the Fibonacci 38.2% one-day, the BB 1h-Middle, the SMA 4h, the BB 15min-Lower, the BB 1h-Lower, and the Fibonacci 23.6% one-day.
The next cushion is around 1.1320 which is the meeting point of the BB one-day Lower, the PP one-day S2, and the PP one-month S1.
All in all, EUR/USD is trading in a limited range and the clusters of support and resistance lines provide further clarity on the matter. When we look more closely, the path of least resistance is to the downside.
Here is how it looks on the tool:
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.